Cambodia expects FTA with South Korea to lift trade, investment


Outgoing South Korean ambassador Park Heung-kyeong (centre left) pays a farewell call on foreign minister Prak Sokhonn on Dec 7. - MFAIC

PHNOM PENH (The Phnom Penh Post/Asia News Network): The kingdom’s top diplomat voiced optimism that the Cambodia-South Korea Free Trade Agreement (CKFTA), which entered into force on Dec 1, will further enhance trade and investment between the two countries, according to the foreign ministry.

Minister of Foreign Affairs and International Cooperation Prak Sokhonn was speaking on Dec 7 during outgoing South Korean ambassador Park Heung-kyeong’s farewell call on him, the ministry noted in a statement.

A free trade agreement (FTA) is an international treaty between two or more economies designed to reduce or eliminate certain barriers to imports and exports among them, generally while safeguarding safety, security, health and other legitimate regulatory objectives.

Such a pact can also serve to facilitate and promote greater economic ties among signatories in areas such as investment and intellectual property protection.

The statement said that, at the meeting, Sokhonn highlighted some of the results of the “good” economic cooperation between the two countries: an uptick in Cambodian mango exports to South Korea and other notable bilateral trade gains; the entry of recognised South Korean firms into the local market as well as inbound Korean investment flows; and Korean assistance in the healthcare domain.

The ambassador offered his congratulations to Cambodia for its “successful” Asean chairmanship and hosting of Asean Foreign Ministers’ Meeting (AMM), dual summits, and related meetings, the statement noted.

At a bilateral meeting with Prime Minister Hun Sen on the sidelines of the dual Asean summits in Phnom Penh last month, South Korean President Yoon Suk-yeol also hailed the economic cooperation and increasing trade between the two countries.

Yoon predicted that the CKFTA would provide a further boost to trade, and in particular South Korean investment in Cambodia.

At the meeting, Hun Sen drew attention to the fact that soaring inbound investment from South Korea has placed it as Cambodia’s second-largest source market. The premier also asked Yoon to encourage more Korean investment in the Kingdom after the CKFTA takes effect.

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Cambodia , South Korea , FTA

   

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